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SNB: Gold referendum threatens efforts to keep EUR/CHF cap

FXStreet (Bali) - The chairman of the SNB denied reports over the possibility of creating a sovereign wealth fund to manage Switzerland's gold reserves should a an anti-sell gold referendum pass, according to a newspaper interview published on Sunday, via Reuters.

Chairman Thomas Jordan said, via Reuters, that such move was "unthinkable", adding that "the SNB cannot simply use some tricks to circumvent the will of the people. I rule that out categorically," he told weekly paper Sonntagszeitung.

Jordan also renewed the SNB's criticism of the proposal, which he said would fuel unemployment, increase the risk of recession and threaten the bank's efforts to keep the Swiss franc capped against the euro.

Meanwhile, SNB board member Fritz Zurbruegg was quoted in Switzerland’s Corriere del Ticino newspaper, noting "if the initiative goes through, our capacity to intervene on currency reserves will be reduced dramatically, with unfavourable consequences for the Swiss economy.”

US session recap: Dollar under performs end of week

It has been a good week in the FX space with wide ranges offering opportunity. The market has been highly sensitive to Central Bank chatter, surprises in such risks as the UK’s inflation report, the ECB and BoJ’s stance on maters relating to recent initiatives in policy and investors are extremely active towards the end of the year.
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